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Golden Chick Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Costs for a Golden Chick Franchise?
To start a Golden Chick franchise, you will need to prepare for a financial commitment ranging from $237,950 to $488,000. This includes a franchise fee of $30,000. Additionally, you must have liquid cash available between $30,000 and $45,000, along with a net worth requirement of $500,000 to $1,000,000. Understanding these costs is crucial for potential franchisees as they assess their financial readiness for this opportunity.
What Are the Ongoing Fees Associated with Golden Chick?
As a Golden Chick franchisee, you will be responsible for ongoing fees that include a royalty fee of 4% on your gross sales and a marketing fee of 1%. These fees contribute to the brand's overall support and marketing efforts, which are essential for driving customer traffic and maintaining brand visibility. It's important to factor these costs into your financial projections to ensure sustainable profitability.
What Is the Average Revenue Potential for Golden Chick Units?
Golden Chick franchises have demonstrated strong revenue potential, with an average annual revenue per unit reported at $1,000,000. The highest annual revenue for a unit can reach up to $1,002,388, while the lowest stands at $600,000. This performance indicates that franchisees can achieve a solid return on investment, provided they effectively manage their operations and marketing strategies.
How Long Does It Take to Break Even with a Golden Chick Franchise?
The breakeven time for a Golden Chick franchise is approximately 18 months, with an investment payback period of around 12 months. This timeline can vary based on factors such as location, management efficiency, and market conditions. Understanding these metrics helps prospective franchisees gauge the financial viability and timeline for achieving profitability in their new business venture.
Golden Chick Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Golden Chick Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2015 | 2016 | 2017 |
|---|---|---|---|
| Total Units | 130 | 151 | 167 |
| Net Change YoY | 21 | 16 | |
| Franchised Units | 124 | 136 | 158 |
| Net Change YoY | 12 | 22 | |
| Corporate Units | 6 | 15 | 9 |
| Net Change YoY | 9 | -6 |
Investment Overview
Golden Chick requires an initial investment ranging from $237,950 to $488,000, which includes a franchise fee of $30,000. Aspiring franchisees should be prepared with cash reserves between $30,000 and $45,000 and possess a net worth between $500,000 and $1,000,000 to qualify for ownership.
Financial Performance
The average annual revenue per unit for Golden Chick is approximately $1,000,000, with a median revenue of $600,000 to $1,002,388. Franchisees can expect to break even within 18 months, with an investment payback period of just 12 months, making it a potentially lucrative opportunity.
Ongoing Fees
Golden Chick charges a royalty fee of 4% on gross sales, along with a marketing fee of 1%. These fees contribute to the brand's collective marketing efforts and operational support, ensuring franchisees maintain competitiveness in the fast-casual dining space.
Franchised Units Growth
Since 2015, Golden Chick has seen consistent growth in franchised units, increasing from 124 in 2015 to 158 in 2017. This growth reflects the brand's expanding market presence and the increasing interest from potential franchisees in the fast-casual sector.
Corporate Structure
Golden Chick operates under the corporate entity Golden Chick, LLC, which provides support and resources to franchisees. The brand's corporate units have also shown growth, with an increase from 6 corporate units in 2015 to 15 in 2016, illustrating the company's commitment to expanding its footprint.
Operational Insights
The average operating expenses for Golden Chick units total approximately $5,058,054 annually, with salaries and related benefits accounting for a significant portion. Maintaining efficient operations and managing these expenses is crucial for maximizing profitability and ensuring long-term success for franchisees.
Frequently Asked Questions
The initial investment for a Golden Chick franchise ranges from $237,950 to $488,000. This includes the initial franchise fee, equipment, and other startup costs.